NetLink Trust leads the way as Southeast Asia IPOs raise $10.4 bil so far this year

NetLink Trust leads the way as Southeast Asia IPOs raise $10.4 bil so far this year

Stanislaus Jude Chan
23/11/17, 03:14 pm

SINGAPORE (Nov 23): Capital markets across Southeast Asia have raised a total of $10.4 billion in 144 initial public offerings (IPOs) in the year up to mid-November – the highest amount raised in the region since 2014.

Mainboard-listed Netlink NBN Trust leads the way, with some $2.45 billion raised in its IPO on the Singapore Exchange (SGX) in July – more than double of the second-highest amount raised in the region.

Malaysia’s Lotte Chemical Titan Holding ranked second with some $1.2 billion raised in its IPO on Bursa Malaysia in July.

According to Deloitte Singapore, the record-high capital raising activity in 2017 so far reflects positive listing decisions and investor confidence in Southeast Asian exchanges.

“Against a healthy global backdrop and resilient domestic demand that supports growth with Southeast Asia’s GDP forecasted at 5.1% — way exceeding the Global GDP forecasted at 2.7%, we can expect the markets to remain dynamic and attractive to investors,” says Dr Ernest Kan, Global IFRS & Offerings Services Leader, Deloitte Southeast Asia.

The promising trend is expected to continue into 2018 with the liberalisation of China’s foreign investment policy, as well as the steady rise of REITs and Business Trusts in each of the Southeast Asian markets, he adds.

Leading the charge in Southeast Asia is the SGX, which has seen 15 deals so far this year, nearly surpassing the 16 deals in the whole of last year. Deloitte expects Singapore’s IPO market to close the year with more than 20 IPOs.

Already, the total amount of funds raised at $3.7 billion so far in 2017 is the highest in four years.

Compared to 2016, the amount raised this year has climbed 61.8% and IPO market capitalisation has increased by 49.1%.

“Liquidity in Singapore’s equity market remains high as there were more IPOs with public offer tranche in the last 10.5 months,” says Tay Hwee Ling, Global IFRS & Offerings Services Leader, Deloitte Singapore.

“Of the 15 IPOs to date, there were ten public subscriptions and all were oversubscribed at a median of 32 times and an average of 103 times,” she adds.

AusGroup to buy housing village & facilities on Australia's Melville Island for $11.4 mil

SINGAPORE (Feb 19): AusGroup, the construction and marine services provider, is acquiring an accommodation village plus facilities worth A$11.8 million ($11.4 million). The village comprises a 119-man accommodation camp, kitchen, administration building and recreational facilities at Port Melville, Melville Island in the Northern Territory of Australia, supporting the Northern Territory oil and gas industry and marine transport industry. The acquisition will be made in cash, and comes without mortgage or security interests. AusGroup’s unit, NT Port and Marine, on Monday signed a gen....

Defensive utility stocks could ride infrastructure boom

SINGAPORE (Feb 18): Utility companies, which are usually deemed to be boring defensive stocks, could turn out to be sexy growth counters. This is because the growing demand for better infrastructure and amenities on the back of the population growth and rising affluence in Asia-Pacific is leading to the implementation of new utility projects in the region. “Because of their strategic significance, utility services have traditionally been provided by the public sector. However, ballooning population growth and fiscal constraints have resulted in more of the world’s utility services to sp....

Space tech start-up Transcelestial lasers in on high-speed connectivity

SINGAPORE (Feb 18): A few months ago, inside a second-storey shophouse in Chinatown, Rohit Jha and his team fired up a PlayStation 4 set. ­Using its controllers, he virtually navigated a small toy car, manoeuvring through a track on a remote rooftop of one of the buildings in Chinatown. The tiny vehicle was monitored by a couple of cameras and linked wirelessly to the team’s office a few blocks away. Jha, CEO and co-founder of space tech start-up Transcelestial, says he often demonstrates the capabilities of the company’s product through the PlayStation setup. The effort has paid off. ....